The opposition Maldivian Democratic Party (MDP) raised concerns about cutting subsidies while the ruling People's National Congress (PNC) praised the budget during the Parliament debate on the proposed state budget for 2025.
At the People's Majlis on Monday, MDP MP Ibrahim Mohamed (Kudu) questioned why the people were not consulted before cutting subsidies and called on the government to inform the people about the effects of cutting subsidies.
"Policies are being changed suddenly without any planning. Social security expenditure, such major changes are being made without giving any information to the people," he said.
"... This means there is no oil subsidy. We can see the oil subsidy being cut altogether, tell the fishermen what will happen to their oil subsidy. We have to tell the fishermen what is going to happen. The government cannot remain silent."
Some MPs expressed concern because stakeholders in various sectors were not consulted during the budget drafting. But PNC MP Mohamed Ibrahim said there was no need to discuss in every matter.
"I, too, note that the budget for 2025 is very thoroughly prepared. Some MPs have mentioned on this floor that people were not consulted or their opinions were not sought in some areas. I want to stress, that the opinions of children cannot be sought in some matters related to children," he said.
PNC MP Abdul Latheef Abdul Rahman, representing the Alifushi constituency, said the proposed budget is very promising.
"I announce my full support to the state budget for 2025. Honourable Speaker, this budget is really very promising. This budget is very different from the budgets passed in previous years," he said.
The government proposed a budget of MVR 56.6 billion for next year. However, the amount budgeted as government aid and subsidies was reduced to MVR 7.9 billion from MVR 10.9 billion.
With huge deductions in amounts budgeted as subsidies, the biggest cut is in fuel subsidies. The budget for 2024 included MVR 2.1 billion as fuel subsidies but the amount was cut down by 80 percent to MVR 433 million.
The state budget for 2024 included MVR 352.9 million in subsidies to reduce food prices, but the proposed state budget for 2025 allocated only MVR 93 million for food subsidies.
The subsidy for overseas medical treatment was reduced by 18 percent from MVR 216 million in 2024 to MVR 182 million in 2025 while subsidies for medical assistance in the Maldives decreased by 21 percent from MVR 176.6 million to MVR 144 million.
One of the sectors where subsidies declined the most was fisheries. Subsidies to fishermen included MVR 413 million this year. However, next year’s budget includes MVR 210 million which is a 49 percent drop.
The government has also cut subsidies for sewerage, transport and pre-schools.
